Copa Holdings EPS Expected to Drop by 20.73% in Upcoming Report

Copa Holdings is set to announce earnings on November 20, 2024, with an expected EPS decline of 20.73%. Despite a recent stock price rise, projected revenue also falls, which may impact investor sentiment.

Date: 19-10-2024

AI Rating: 4

Copa Holdings (CPA) saw a slight increase in its stock price, closing at $102.04 with a modest gain of 0.3%. Despite outperforming the Transportation sector and the S&P 500 over the past month, the upcoming earnings report set for November 20, 2024, casts a shadow on its performance.

Investors should note that the earnings per share (EPS) for Copa Holdings is projected at $3.48, reflecting a 20.73% decrease compared to the same quarter last year. This is a significant decline, which can negatively influence investor sentiment as expectations are lowered.

Moreover, the report indicates that the revenue estimate stands at $860.34 million, which is down 0.85% from the previous year. This indicates a potential challenge for the company in maintaining growth, as revenue initiatives may not be yielding expected results.

Throughout the fiscal year, it is projected that the company may achieve an EPS of $14.62 and a total revenue of $3.48 billion, suggesting declines of -12.92% for EPS and growth of +0.66% for revenue from last year.

While a forward P/E ratio of 6.96 indicates that the company is trading at a discount compared to the industry average of 10.76, the projected EPS decline coupled with falling revenue could challenge investor confidence.

Furthermore, Copa Holdings currently has a Zacks Rank of #3 (Hold), indicating a neutral position in terms of recommendation. Moving forward, the market will be closely observing how estimate revisions could impact stock price performance.

Stocks: CPA